Stocks

SEBI raps Prabhat Dairy for not cooperating with forensic auditor

PALAK SHAH Mumbai | Updated on October 20, 2020

SEBI on Tuesday directed Prabhat Dairy to pay ₹1,292 crore to escrow account in Lactalis deal. It has also taken to task Prabhat Dairy for not cooperating with the regulator appointed forensic auditor Grant Thornton. SEBI has ordered the company to submit all the demanded documents without any delay. The regulator has also said that it would allow delisting of the company only after the forensic audit is completed.

On August 6, Business Line had reported that Prabhat Dairy and its deal to sell its business were under SEBI scanner

SEBI said, "The deliberate attempt on your part by not providing information/documents in relation to forensic audit citing vague and weak grounds was not in the interest of investors and shareholders and thus delaying the process.”

As per SEBI's order, the company provided only three of the 27 documents sought by the forensic auditor. Also, SEBI had directed the company to share its letter with the stock exchanges but that too was not done.

In April 2019, Prabhat Dairy sold its flagship fresh milk business to Lactalis for ₹1,700 crore. In September 2019, it announced its delisting plans and applied for the same in December 2019. All this at a time when investors were expecting a huge dividend.

Published on October 20, 2020

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